Vitalik Buterin, Ethereum’s co-founder, has long been a supporter of the cryptocurrency community, and in a recent podcast interview, the 27-year-old expressed his thoughts on not only his own network, but also top cryptocurrency Bitcoin and the communities of both blockchains.
Buterin, who described himself as a tech philosopher in the interview, expressed concern about the cryptocurrency space falling into a “cultural trap” if many proponents of the top networks’ current schools of thought are not changed.
While, in general, he was concerned that many crypto-proponents believed in a crypto-only approach while ignoring other global issues. In terms of Ethereum, the entrepreneur was concerned that the network’s main cultural flaw could be its exclusivity for the wealthy. Buterin went on to say that this was most likely due to the network’s exorbitant fees.
When asked if the flipping would happen in the future, Buterin responded, “It could.” He explained why Ethereum could overtake Bitcoin in terms of market capitalization.
“I believe the main difference between Ethereum and Bitcoin is that Bitcoin is a platform where the value of the ecosystem is determined by the value of the currency, whereas Ethereum’s value is determined by the value of the ecosystem.”
Since the much-anticipated London hard fork occurred on the network in June, the network fees issue has been addressed while the transaction payment system has been improved. Buterin said, pointing to this as another point for Ethereum,
“Especially after EIP 1559, when the fees are burned, that becomes true in a more direct economic sense.”
At the time of writing, Ethereum’s market cap had nearly flipped Bitcoin’s, while completely outnumbering the top digital asset in terms of transaction count and transaction fee.
Moving on to the growing popularity of decentralized autonomous organizations (DAO), Buterin expressed his enthusiasm for the emerging sector as well as retroactive public goods experiments like Gitcoin DAO and Optimism.
In response to the question of whether DAOs could be the next big thing after the success of decentralized finance and nonfungible tokens, he stated,
“I believe DAOs will become increasingly important over time… In terms of what’s still missing from the DAO space, I don’t believe there’s a single big thing, but rather a slew of small ones.”
“When will the first DAO decide to pivot its strategy, or when will two DAOs decide to merge?” It’s the ability to make big decisions rather than just continue incrementally on the same path that I believe we’ll see soon.”
Finally, the crypto genius discussed the NFT craze, which has enthralled the crypto community and increased Ethereum traffic by attracting new demographic sets. He stated,
“From a cultural standpoint, I think NFTs have been interesting because they bring people into Ethereum who have a completely different mindset than DeFi and regular crypto people, for example.”